How are people buying from costco and selling on amazon
I was doing some math on the costco products and I am wondering how are people profitable buying from costco and selling them on amazon. I am looking at this ASIN for example.
B00J04NUIG
FBA sellers are selling it for $37 and the cost of it is $23. Teh FBA fees are $12.35 so basically you are making .04 a unit, basically breaking even. Why would someone buy from Costco and sell it on amazon. The margins aren't there and yet people are doing it. Am I missing something?
How are people buying from costco and selling on amazon
I was doing some math on the costco products and I am wondering how are people profitable buying from costco and selling them on amazon. I am looking at this ASIN for example.
B00J04NUIG
FBA sellers are selling it for $37 and the cost of it is $23. Teh FBA fees are $12.35 so basically you are making .04 a unit, basically breaking even. Why would someone buy from Costco and sell it on amazon. The margins aren't there and yet people are doing it. Am I missing something?
37 replies
Seller_nRFmxiQg4EGrw
You're not; but many people are. T/hey are the ones selling these items for no profit.
Seller_keSnEDesLFVwv
I suspect that many of these sellers are Costco employees, selling pilfered goods.
Seller_JCqbXUeHNoJiE
Likely liquidation autions that costco pulled from shelves.
Seller_bUS47wleweJ65
how can Amazon allow to list these vitamin/food products? I thought they will need to upload some certificates or documents to prove the product origin?
Seller_TvaTXH61RRGLO
Various reasons why they sell underpriced such as:
-They bought the items at liquidation
-They want to get rid of the items and sell them at a cost
Seller_IFRrkIcoHoGF8
because their price tanking. They tank the price so low to the point where nobody profits anything. Costco is wholesale & not everyone has access to shop there so it's awesome you can sell it on here to reach a bigger audience BUT then you have all these "new people " who were poorly trained, don't know half of what their doing & they start fighting for the buybox lowering & lowering the price. PPL NEED TO UUNDERSTAND= YOU DONT NEED TO FIGHT & PRICE TANK FOR THE BUYBOX! THE BUYBOX ROTATES EVENLY AMONG BUYERS SO JUST PRICE THE SAME AS EVERYONE OR RAISE IT A FEW DOLLARS BUT NEVER GO LOWER THAN THE BUYBOX!
Michelle_Amazon
Hello @Seller_rAtH18VN0PwXJ,
Michelle at Amazon here. Amazon does not accept receipts from Costco, you have to have an invoice from an authorized distributor to list on Amazon. These sellers are likely buying from an authorized distributor or directly from the brand.
I hope this information is helpful.
Regards,
Michelle
Seller_zONeO5hiTh1px
Maybe they're not. Maybe they have a repricer set to conditionally lower their price until the inventory is sold. I am sure there are many sellers who use a similar strategy to get rid of stale inventory. Just because a seller sells some items at a loss doesn't imply their business isn't profitable. It just means they want to free up capital to purchase other goods.
Seller_C9TzOxTwGSFUQ
That is SUPER easy to figure out. It is from 1 of only 3 groups of people making money on Amazon. Here is your clue, the sellers cost of goods is $0 so they are actually making $24.65 off of every single one they can get there hands on.
